Transcript Topic 1 - Faculty Personal Web Page

What is
Electronic Commerce?
Learning Objectives
• Internet, Intranet, Extranet
• Technology Infrastructure
– How packet-switched networks are combined to
form the Internet
– Internet protocols and Internet addressing
– The history and use of markup languages on the
Web, including SGML, HTML, and XML
• E-commerce
• Advantages vs. Disadvantages of EC
• Main concerns of EC
Internet/Intranet/Extranet
Internet
• A rapidly growing network of thousands of
business, educational, and research networks
connecting million of computers and their users
in over 100 countries.
• The Internet is accessible to anyone with a
modem and the proper communications
software on their computer.
Intranets
• An interconnected network that does not
extend beyond the organization that created
it.
• Intranets are an extremely popular and lowcost way to distribute corporate information.
• An intranet uses Web browsers and Internetbased protocols (including TCP/IP, FTP,
Telnet, HTML, and HTTP) and often includes a
firewall.
Extranets
• Extranets are intranets that have been
extended to include specific entities outside
the boundaries of the organization (business
partners, specific customers, suppliers, etc.).
• An extranet can be:
• a public network,
• a secure (private) network, or
• a virtual private network (VPN).
Extranets Network
• A public network is any computer or
telecommunications network that is available to the
public.
• A private network is a private, leased-line connection
between two companies that physically connects
their intranets to one another.
• A VPN extranet is a network that uses public
networks and their protocols to send sensitive data to
partners, customers, suppliers, and employees using
a system called ‘IP tunneling’ or ‘encapsulation’.
Internetworked Enterprise
The Internet
Company
Intranets
Extranet
Extranet
Intranet
Intranets
Intranets
Customer
Supplier
Extranet
Intranets
Extranet
Other Company Locations
Technology Infrastructure:
The Internet and the
World Wide Web
Technology Overview
• The Internet includes:
• The hardware that connects the computers
together and
• The hardware that connects the networks
together
• The computers in these networks run such
software as:
• Operating systems, database managers,
encryption software, multimedia creation and
viewing software, and the graphical user interface
Types of Networks
• A local area network (LAN) is a network of
computers close together.
• A wide area network (WAN) is a network of
computers connected over a great distance.
Switched Networks
• The Internet uses packet switching
• Files are broken down into small pieces (called
packets) that are labeled with their origin,
sequence, and destination addresses.
Routing Packets
• The computers that decide how best to
forward each packet in a packet-switched
network are called ‘routers’.
• The programs on these routers use ‘routing
algorithms’ to determine the best path to
send each packet.
• When packets leave a network to travel on
the Internet, they are translated into a
standard format by the router.
• These routers and the telecommunication
lines connecting them are referred to as ‘the
Internet backbone’.
Routing Packets
Internet Protocols (IP)
• A protocol is a collection of rules for formatting,
ordering, and error-checking data sent across a
network.
• ARPANET is the earliest packet-switched
network.
• The open architecture of this experimental
network used Network Control Protocol (NCP)
which later became the core of the Internet.
IP (Four Rules)
• Independent networks should not require any
internal changes to be connected to the network.
• Packets that do not arrive at their destinations
must be retransmitted from their source network.
• Router computers act as receive-and-forward
devices; they do not retain information about the
packets that they handle.
• No global control exists over the network.
TCP/IP
• The Transmission Control Protocol (TCP) and
the Internet Protocol (IP) are the two
protocols that support the Internet operation
(commonly referred to as TCP/IP).
• The TCP controls the disassembly of a
message into packets before it is transmitted
over the Internet and the reassembly of
those packets when they reach their
destination.
• The IP specifies the addressing details for
each packet being transmitted.
IP Addresses
• IP addresses are based on a 32-bit binary
number that allows over 4 billion unique
addresses for computers to connect to the
Internet. Approximately two billion IP
addresses are either in use or unavailable for
use.
• IP addresses appear in ‘dotted decimal’
notation (four numbers separated by
periods).
• They are assigned by three not-for-profit
organizations (ARIN, RIPE, and APNIC).
Domain Names
• To make the numbering system easier to
use, an alternative addressing method that
uses words was created.
• An address, such as www.course.com, is
called a domain name.
• The last part of a domain name (i.e.,
‘.com’) is the most general identifier in the
name and is called a ‘top-level domain’
(TLD).
Top-level Domain Names
Web Page Delivery
• Hypertext Transfer Protocol (HTTP) is the set of rules
for delivering Web pages over the Internet.
• HTTP uses the client/server model
• A user’s Web browser opens an HTTP session and
sends a request for a Web page to a remote
server.
• In response, the server creates an HTTP response
message that is sent back to the client’s Web
browser.
• The combination of the protocol name and the
domain name is called a uniform resource locator
(URL).
URL (Uniform Resource
Locator)
• Internet address
• Three parts
• Protocol (how file will be sent)
• Domains (computer path to file)
• File pathname (folders and filename)
Sample URL
http://www.petrozello.com/petrozello/index.html
domains
protocol
(HyperText
Transfer Protocol)
folder
file extension
file pathname
Markup Languages and the
Web
• Web pages are marked with tags to indicate the
display and formatting of page elements.
• SGML is a meta language, which is a language
that can be used to define other languages.
• HTML and XML are both derivatives of SGML.
Hypertext Markup Language
• HTML is a simplified subset of SGML
(Standard Generalized Markup Language)
that includes tags defining the format and
style of text elements in a document.
• HTML now includes tags for tables, frames,
and other features that help Web designers
create more complex page layouts.
HTML Tags
• An HTML document contains both document
text and elements.
• Tags are codes that are used to define where
an HTML element starts and (if necessary)
where it ends.
• In an HTML document, each tag is enclosed
in brackets (<>).
• A two-sided tag set has an opening tag and a
closing tag.
Basic Structure of a Web Page
<html>
<head>
<title>Write the title of the page
here</title>
</head>
<body>
The text for your web page .
</body>
</html>
Text Formatting
<b> …</b>
Make the text inside the tags bold
<u> … </u>
Underline the text
<i> … </i>
Italicize the text
<tt> … </tt>
– Typewriter font
<font size=+2>E</font>XAMPLE
EXAMPLE
Nested Information
• Tags work in pairs
• Nest the pairs
<B><I><u> for emphasis </I></B></u>
Unknown results!
<B><I><u> for emphasis</u> </I></B>
for emphasis
Text Formatting (<br> & <p>)
Two of my favorite movies are:<p><I>Apollo
13<br>&<br>Dead Poets Society</I>
Two of my favorite movies are:
Apollo 13
&
Dead Poets Society
HTML Links
• Hyperlinks are bits of text that connect the
current document to:
• another location in the same document
• another document on the same host machine
• another document on the Internet
• Hyperlinks are created using the HTML
anchor tag.
Tagging a Hyperlink
< > indicate a tag (instruction)
a instruction means anchor
anchor what? hypertext reference
beginning tag
ending tag
<a href = “http://msn.com/new.htm”>Products</a>
hypertext
HTML Editors
• HTML documents can be created in any
general-purpose text editor or word
processor.
• Sophisticated editors can create full-scale,
commercial-grade Web sites with database
access, graphics, fill-in forms, and display the
Web page along with the HTML code.
• Microsoft FrontPage and Macromedia
Dreamweaver are examples of Web site
builders.
HTML Editors
Extensible Markup Language
• Unlike HTML, XML uses markup tags to
describe the meaning of the text rather than
its display characteristics.
• XML uses paired start and stop tags in much
the same way as database software defines a
record structure.
• An XML document can be embedded within
an HTML document.
• XML allows a user to ‘extend’ the language by
creating their own tags.
Markup Languages and the Web
Scripting Language and Style
Sheet Capabilities
• Web designers can use the OBJECT tag to
embed scripting language codes in HTML
pages (this is also called client-side scripting).
• Scripts can execute programs on computers
that display those pages.
• Cascading Style Sheets (CSS) let designers
define formatting styles that can be reapplied
to multiple Web pages.
Internet Connection Options
• The Internet is a set of interconnected
networks.
• Large firms that provide Internet access
to other businesses are called Internet
Access Providers (IAPs) or Internet
Service Providers (ISPs).
Connectivity Overview
• The most common connection options that ISPs
offer to the Internet are telephone, broadband,
leased-line, and wireless.
• Bandwidth is the amount of data that can travel
through a communication line per unit of time.
• Bandwidth can differ for data traveling to or from
the ISP.
Voice-Grade Telephone
Connections
• The most common way to connect to an ISP is
through a modem connected to your local
telephone service provider.
• POTS uses existing telephone lines and an analog
modem to provide a bandwidth of 28-56 Kbps.
• ISDN uses the DSL protocol suite to offer
bandwidths between 128-256 Kbps.
Broadband Connections
• Connections that operate at speeds of greater
than 200 Kbps are called broadband services.
• ADSL uses the DSL protocol to provide
bandwidths between 100-640 Kbps upstream
and 1.5-9 Mbps downstream.
• Cable modems provide transmission speeds
between 300 Kbps-1 Mbps from the client to
the server and a downstream rate as high as
10 Mbps.
• Satellite microwave transmissions handle
Internet downloads at speeds around 500
Kbps.
Leased-Line Connections
• Large firms can connect to an ISP using
higher-bandwidth connections that they
can lease from telecommunications
carriers.
• A ‘T1’ line operates at 1.544 Mbps and a
‘T3’ line operates at 44.736 Mbps.
Wireless Connections
• Many researchers and business managers see
great potential for wireless networks and the
devices connected to them.
• The term m-commerce (mobile commerce) is
used to describe the kinds of resources people
might want to access using devices that have
wireless connections.
Internet Options
Electronic Commerce
Economic Forces
and Electronic Commerce
• Business activity today occurs within
large hierarchical business organizations,
referred to as firms or companies.
• Transaction costs are the total of all costs
that a buyer and a seller incur as they
gather information and negotiate a
purchase-sale transaction.
The Role of Electronic
Commerce
• Electronic commerce can play a role
in
– reducing costs
– improving product quality
– reaching new customers or suppliers
– creating new ways of selling existing
products
Electronic Commerce
• To many people, the term electronic commerce
means shopping on the part of the Internet
called the World Wide Web.
• Although consumer shopping on the Web was
running about $130 billion per year in 2002 and
is expected to exceed $500 billion by 2004,
electronic commerce is much broader and
encompasses many more business activities than
just Web shopping.
Electronic Commerce
• Electronic commerce refers to business activities
conducted using electronic data transmission via the
Internet and the World Wide Web.
• The three main elements of e-commerce are:
– Business-to-consumer
– Business-to-business
– The transactions and business processes that support
selling and purchasing activities on the Web
• Other categories include: consumer-to-consumer and
consumer-to-government.
Electronic Commerce
The Internet
Suppliers and Other Business Partners
Extranets
Company Boundary
Procurement, Distribution, and Logistics
Intranets
Engineering,
and
Research
Manufacturing
and
Production
Accounting,
Finance, and
Management
Intranets
Advertising
Sales
Customer Service
Extranets
Consumer and Business Customers
Electronic Commerce
• Electronic Funds Transfers (EFTs) have
been used by banks for many years.
• Electronic Data Interchange (EDI) occurs
when one business transmits computerreadable data in a standard format to
another business.
Example of Using EDI
Purchase orders to order steel for production
Notify shipments
GM
USX
Billing
Notify bank to
transfer money to
USX’s account
Notify orders
Bank
USX Shipping
Department
Electronic Data Interchange (EDI)
The primary goals of EDI are:
Cut the transaction cost
Speed up the ordering process

There are two important considerations:
Establishing the physical link
Transferring data in a format compatible to
all users
Value Added Network (VAN)
• A value added network is an independent firm
that offers connection and EDI transaction
forwarding services to buyers and sellers
engaged in EDI.
• VANs are responsible for ensuring the security of
transmitted data.
• VANs charge a fixed monthly fee plus a pertransaction charge to subscribers.
Advantages of E-Commerce
• Cut data handling cost
• Easier to search for data and compare
offerings
• Electronic commerce increases sale
opportunities for the seller. Web advertising
reaches a large amount of potential
customers throughout the world.
Disadvantages of E-Commerce
• Some business processes are difficult to be
implemented through electronic commerce.
• Computers are needed - Computers are not
as portable as catalog
• There are concerns about security provisions
on the internet
• Businesses face cultural and legal obstacles to
conducting electronic commerce.
Main Concern for E-Commerce
•
•
•
•
•
•
Enough suppliers available
Method to take orders
Method to deliver product
Method and quality of customer interaction
Method of information transmittance
Level of work willing to invest